January 17, 2011

SAPCRES - ECM maintains 'buy' call on SapuraCrest

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: ECMLIBRA

ECM Libra Investment Research has maintained its 'buy' call on SapuraCrest Petroleum Bhd following the company's strong orderbook and potential for more major jobs in and outside Malaysia.

The research firm also raised its target price for SapuraCrest to RM4.20 from RM3.50.

"We continue to like SapuraCrest and favour the stock as one of our top picks in the oil and gas (O&G) sector. "Basically, we see that earnings visibility is good into 2013 which is rare for an O&G company," it said in a research note today.

ECM Libra said despite a difficult year for many O&G companies, SapuraCrest sailed through 2010 relatively unscathed.

The company's installation of pipelines and facilities segment and joint-venture pipe-lay vessels performed well.

"The group is likely to end financial year 2011 with a bang, clocking in some 30 per cent net profit growth," it said. -- Bernama

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